nep-isf New Economics Papers
on Islamic Finance
Issue of 2019‒02‒18
two papers chosen by

  1. Some Higher Education Issues in Muslim Countries with Islamic Economics as an Illustrative Case By Hasan, Zubair Hasan
  2. Complémentarité Banque islamique du Sénégal/institutions de microfinance : un modèle de financement inclusif et durable des PME sénégalaises By SECK, Massamba Souleymane

  1. By: Hasan, Zubair Hasan
    Abstract: The purpose of this paper is (i) to state the objectives of higher education commensurate with Islamic requirements; (ii) to examine the current state of higher education in Muslim majority countries with reference to the stated objectives with a view to indentifying the main issues it faces and (iii) to present in outline a program for creating an Islamic space for higher education at the global level. The constraints of space, time and resources at our disposal do not permit us to present an all covering blue print on this vital subject. Instead of dealing with specifics, we shall focus on attitudinal and directional issues of evolution. We shall use Islamic economics including finance as an illustrative case. Even here a comprehension of the desired magnitude may be lacking. Thus, we are conscious of the limitations of the truncated approach the paper takes to the problem. Yet, we expect the exercise to be rewarding in lighting up a few dark corners in the area.
    Keywords: Objectives of education; Islamic economics and Issues in higher learning; remedial action.
    JEL: I2
    Date: 2018–08
  2. By: SECK, Massamba Souleymane
    Abstract: The purpose of this article is to analyze the complementary relationship between the Islamic Bank of Senegal (BIS) and microfinance institutions (MFIs) and their contributions to the inclusive and sustainable financing of Senegalese SMEs. Indeed, in Senegal, the SMEs that make up almost the entire productive sector, 99.8% of the economic fabric, 3450.3 billion FCFA of turnover and more than 45% of the active population in 2016 (ANSD / RGE, 2016), have great difficulty in obtaining external and formal financing. The Senegalese financial system, which is predominantly dominated by banks and MFIs, gives SMEs a very limited chance to access financing. This is because the financing needs of SMEs are too important for MFIs but too low for banks to respond optimally to their needs. In addition, the banking sector, which has sufficient liquidity, is struggling to obtain financing mechanisms that are appropriate to the needs of SMEs. On the side of MFIs that have the appropriate financing tools, they are unable to find significant resources to meet the demand for funding of large SMEs. In this momentum, the complementarity between Islamic banking and MFIs seems to be the most appropriate and effective solution to address the financial difficulties of SMEs. Indeed, the research hypothesis of this article is that the refinancing partnership between these two financial structures favorably affects the financing of SMEs. Our panel data estimates confirm our main research hypothesis because they show positively and decisively the role of the complementarity relationship between these two financial institutions on the financing of SMEs.
    Keywords: Complementarity, Islamic banking of Senegal, microfinance institutions, SMEs, inclusive and sustainable finance, panel.
    JEL: C23 G14 G21 O17
    Date: 2019–02

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